Chula Vista City Councilmember Andrea Cardenas and her brother, Jesus Cardenas, pleaded not guilty Thursday to criminal charges stemming from an alleged fraudulent loan for their political consulting business.
The siblings are accused of fraudulently obtaining a $176,227 Paycheck Protection Program loan in early 2021 intended for their firm, Grassroots Resources, then using the funds on personal expenses, including a $33,500 check to Andrea Cardenas' Chula Vista City Council campaign account.
They are accused of making several misrepresentations in order to secure that loan, including that they were using the funds to support 34 Grassroots Resources employees, when in reality those employees worked for a marijuana dispensary that was a Grassroots client.
Jesus Cardenas, 40, who served as chief of staff for San Diego City Councilmember Stephen Whitburn until his resignation earlier this year, faces up to four years and four months in prison, while Andrea Cardenas, 31, faces up to five years and eight months if convicted of all charges, which include conspiracy to commit a crime, money laundering, conspiracy to defraud, grand theft, and failing to file tax returns.
The siblings have been allowed to remain out of custody on their own recognizance. They're due back in court in early January.
While some Chula Vista leaders have called for her resignation, Andrea Cardenas remains on the City Council.
Her defense attorney, Pedro Bernal, told reporters after Thursday afternoon's arraignment that his client "does not plan to step down. She plans on fighting these charges."
Bernal continued, "She's represented her constituents for a long time and she's served her community for many years. And she plans on continuing to do that."
In a statement issued earlier this week, Cardenas said she and her brother "became aware of many of the details of these allegations through local media outlets, who received a full copy of the complaint before we did.
"Our American judicial system is built on the fundamental principle that our citizens are innocent until proven guilty. As someone who has spent more than half of my life working to support and elevate my community, I understand and respect the critical work that our District Attorney's Office does to uphold the law. While the DA's Office is tasked with the responsibility to protect our community and prosecute abusers of the law, as defendants, we are afforded the right to prove our innocence.
"My intent has never been to harm or disappoint those who believed in me, both in life and at the ballot box. Many conversations are taking place around me about me and what others think is the best way for me to move forward. I would like to make one thing very clear — my commitment to my community continues. As we move forward in this process, I hope to be given an opportunity by the media, folks in political circles, and, most importantly, my constituents to defend myself."
